A new update has been reported in the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC), with Ripple submitting a new letter supporting a joint motion requesting a declaratory judgment from the court.
According to CryptoPolitan on the 18th (local time), there has been an update in the legal battle between Ripple and the SEC, with Ripple submitting a new letter supporting a joint motion requesting a declaratory judgment from the court.
The letter sent to Judge Torres explains why approving the declaratory judgment motion is crucial to completely ending the Ripple vs. SEC case. The company provided three reasons why the court should approve the parties' request.
This comes after both Ripple and the SEC requested that the ongoing appellate proceedings at the Second Circuit Court be continued to be suspended. The U.S. court asked the SEC's Atkins to report on the future direction by August 15, 2025.
In the current situation, neither side wants to overturn or modify the summary judgment order. This order will remain binding on the parties and be useful to other courts. The parties request to modify only the relief granted in the Ripple vs. SEC case by lifting the injunction and adjusting the fines.
Ripple also clarified that removing the "comply with the law" injunction does not change the responsibility to follow securities laws. Like all other companies, it said it must always comply with legal regulations, with or without a court order.
The company wrote, "As one of the early cryptocurrency industry participants sued by the SEC, Ripple's lawsuit has been the longest-fought and has reached both a full merits and relief determination."
First filed in 2020, the case accused Ripple of conducting $1.3 billion in unregistered XRP sales. Judge Analisa Torres said in July 2023 that XRP coin secondary sales were not securities. This was a significant victory for Ripple and the entire cryptocurrency industry.
However, the judge also stated that selling XRP to investors during funding rounds was like selling stocks because the tokens were given as compensation for business investments. Judge Torres later said Ripple must pay the SEC a $125 million fine, which occurred in August 2024.
Dissatisfied with the case outcome, the SEC filed an appeal in October 2024, about a month before the U.S. presidential election.
In an X post on March 19, Ripple's CEO Brad Garlinghouse said the SEC is withdrawing its appeal. He also released a video message praising this decision as the official "closure" of the case.
According to CryptoPolitan's report, on June 12, the SEC and Ripple also jointly submitted an application to the Manhattan District Court. Both sides requested the court to release the $125 million civil penalty against Ripple from escrow. According to the proposal, $50 million would be returned to the SEC, and the remaining $75 million to Ripple.
Meanwhile, during the proceedings between Ripple and the SEC, the XRP Ledger has shown strong growth indicators, encompassing both user and major stakeholder perspectives. Santiment said that over the past week, an average of more than 295,000 active XRP addresses were trading in the market daily.
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